I have a swelled head, and I'm sure you know that! Thanks, Vicky!
I don't know whether Azazel actually could smell out people able to be angel vessels, or just looked for good, solid folk who might be. My guess is the latter. We know from Ava's description in All Hell Breaks Loose of her series of combats that he had seeded a lot more families than we knew about, and we saw in In The Beginning that he had made his approaches to both men and women. He couldn't have known who they would marry or have children with - although in Mary's case, he knew by the time he made the deal that she would have a son who consorted with angels, so that must have been a thrill for him.
I think if Michael made the same kind of approach to Dean that he did to John - that enveloping light thing requesting admission to the body - Dean would perceive him. The show's conceit, however, has been that, in that specific circumstance, we the audience could not; remember Castiel's light surrounding Jimmy, with Jimmy talking to a voice we could not hear, and Michael's light surrounding young John in similar silence. I would note that even Jimmy couldn't bear Castiel the first time he approached; he collapsed in what looked like an epileptic fit from the overload.
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Songs in the Key of Supernatural